The global guar gum market size is expected to reach USD 785.2 million by 2025, according to a new report by Grand View Research, Inc. The global market is projected to expand at a CAGR of 4.4% during the forecast period. Increasing use of guar gum for horizontal oil well drilling and hydraulic fracturing in the shale gas and oil industry is presumed to be the primary factor for market growth.
Increasing purchasing power of buyers owing to rising per capita income is expected to result in increased consumption of processed food. In addition, growing urban population and preference for convenience food by time-constraint consumers is expected to escalate the growth of the food processing industry, consequently driving demand for guar gum.
Production and demand are key factors influencing the price of raw material with changes in consumption trends of consumer industries, resulting in price fluctuations. The amount of rainfall during the monsoon determines raw material supply for the product. High fluctuation in prices with no minimum price guarantee may hamper market growth.
The industry faces a rising threat of substitution, owing to availability of cheaper substitutes such as xanthan gum, locust bean gum, and other synthetic alternatives. However, the threat of substitution is expected to remain moderate as synthetic alternatives are not preferred due to environmental risks and uncertain performance efficiency.
The market is concentrated in Asia Pacific, especially India and Pakistan. Majority of companies in this market operate their businesses on a small scale. Companies that cater to international markets, especially U.S., China, Europe, and Saudi Arabia, usually opt for direct distribution in order to increase their profit margin.
Industrial grade guar gum is expected to register a high revenue-based CAGR of 5.3% from 2018 to 2025 owing to its widespread usage in paper, textile, mining, and explosives industries
Thickening and gelling agent is estimated to be the fastest-growing function segment by revenue, registering a CAGR of 5.0% from 2018 to 2025, owing to its rising use in food, pharmaceutical, and oil and gas industries
Oil and gas industry is the largest application segment, which stood at USD 208.2 million in 2017, due to a booming U.S. shale gas and oil industry
Product demand in North America is expected to value USD 415.2 million by 2025 on account of growing exploration and production activities in U.S. and Canada
The market exhibits presence a number of small-scale manufacturers, primarily located in India and Pakistan. Major companies in the market focus on mergers and acquisitions in order to expand their business. However, they face competition from small players in terms of product prices.
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Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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